Italy Warned by ECB That One-Off Taxes Hurt Investor Confidence

The European Central Bank warned Italy that the government’s tendency to impose one-off levies creates uncertainty, undermines investor confidence and risks legal disputes.

“The recurring introduction of ad-hoc tax provisions unduly increases policy uncertainty regarding the tax framework, damaging investor confidence and potentially also affecting credit institutions’ funding costs,” the ECB said in a legal opinion dated Monday. “In addition, perceptions that the taxation framework is uncertain may give rise to extensive litigation, creating problems of legal uncertainty.”

The ECB issued its assessment following a request from the country’s finance ministry to study certain provisions of the 2026 budget concerning ...